Business Advisory

Understanding the JobKeeper Payment Scheme

Are you still confused about the JobKeeper payment scheme? You’re not alone. We've outlined what you need to know in our blog below.

July 13, 2020
Bookkeeping Services
Lauren
Hillier 

Several of our clients have been left scratching their heads about their obligations under the COVID-19 subsidy program.

Most people do understand that JobKeeper aims to help businesses significantly impacted by the downturn resulting from social distancing restrictions. But many employers – especially small business owners –need an easy to understand rundown of their JobKeeper obligations.

The team at Hillier's Advisors decided to pull together the key things employers with staff eligible need to do to cover off their responsibilities

JobKeeper Monthly Reporting

You will have already enrolled for the JobKeeper payment and nominated your eligible employees (the deadline for this step by 31 May 2020).The important date to keep front of mind is the 14th day or the month.

A business declaration must be lodged in the first 14 days of the month following the one you’re claiming JobKeeper payments for.

The Australian Tax Office (ATO) needs you to re-confirm your business details and eligible employees. You will also need to provide information about your GST turnover for the reported month and projected GST turnover for the following month. It’s also important to update your employee information if anyone leaves.

The ATO has made assurances that its request to know your turnover is nothing to do with your eligibility to continue receiving the subsidy for your employees. It’s simply a way for the ATO to see how businesses are progressing under the JobKeeper payment scheme.

Before you submit your monthly report

Below is a handy checklist for you to refer to before you hit ‘enter’ in the Business Portal.

  • Have you have worked out your GST turnover for the reported month?
  • Have you projected your GST turnover for the following month?
  • Have you paid each eligible employee at least $1,500 (before tax) for each fortnight you are claiming for?
  • Have you updated your eligible employees’ information (if necessary).

If you can say yes to all the above, you’re ready to submit your monthly report.

Getting your online systems set up

Before you can action any of your JobKeeper payment scheme obligations, you will need to ensure your online services with my GovID and RAM are set up and running properly.

You can do this by heading to the ATO’s online services portal.

Still confused by JobKeeper?

We understand how tough it’s been for small businesses during the unexpected global COVID-19 pandemic and are here to help with any concerns or questions.

Whether you're an existing client, or in need of accounting advice during this challenging time, please reach out to us.

Our team of chartered accountants have built our expertise and skills on generations of trust behind our business.

By

Lauren

Hillier 

Principal

Lauren Hillier is the Principal Accountant at Hillier’s Advisors. After developing her skills and knowledge under father’s watchful eye, the family business...

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